personal finance

Struggling to get through the month? Get paid a day early


Get paid a day early – for free. That’s the tempting proposition from one of Britain’s fastest-growing banks that will particularly appeal to those who often struggle to get through the month.

App-based bank Monzo says it will now let people get their hands on their salary at 4pm the day before it is due to arrive. Normally the earliest you would be able to get at your cash would be at least eight hours after that – at midnight or later.

So how does it all work, what’s the catch, and are there any other similar services out there?

Monzo says its “get paid early” feature means anyone with one of its accounts can opt to get Bacs “direct credit” payments put into their account a day earlier.

It says this doesn’t just apply to salary payments, but to any Bacs direct credit payment, including pensions, student loans and tax credits. Almost 90% of the UK workforce is said to be paid using Bacs. “By 4pm on the day before your money is due to arrive, the receiving bank you get paid into is confident the money will arrive because they can see it coming in the system. So all banks could technically advance money at this point. Most choose not to, but we thought it was fair to give you the choice to get your money sooner,” claims the bank.

The catch, of course, is you need to be a customer and, crucially, get your salary paid directly into your Monzo account.

The company has been doing well when it comes to signing up customers, but the challenge faced by the new-style smartphone banks is persuading people to use them as their main account. Perhaps this could be the feature that convinces more people to make the leap?

Also, you will need to be paid by Bacs. Most people are, but check with your employer. This is an opt-in feature, so customers don’t have to use it. It appears in the app as a notification.

It is claimed that the precise time that different UK banks make people’s wages and other payments available for withdrawal varies: it might be the stroke of midnight, or it might be half an hour before that if you are lucky – or it might be that you have to wait until at least 6am on payday. What is described as a detailed investigation into this topic was published on the ToughNickel website last summer, and is definitely worth a read if you are interested in this area.

If your payday falls on a Saturday or Sunday, it is thought most banks will allow you to access your money on the Friday or Saturday morning.

There are other options that claim to solve the cashflow issues caused by what some might argue is an inflexible wage payment cycle.

Wagestream is an app used by some employers that gives workers early access to a percentage of their salary. This means they don’t have to turn to payday loans or other high-cost options, the company says.

The average advance is £84 and the average employee uses the app 2.2 times a month, paying a flat fee of £1.75 each time they do so.



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